₹20,000 crore to DST for ₹1 lakh crore R&D fund

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₹20,000 crore to DST for ₹1 lakh crore R&D fund

Finance Minister Nirmala Sitharaman allocated ₹20,000 crore to the Department of Science and Technology (DST) in the 2025 Union Budget for creating a research and development fund worth ₹1 lakh crore. The government will use this funding to drive innovation within the private sector, especially in deep tech and developing technologies.

The program includes plans from the government to create a Deep Tech Fund of Funds that will foster next-generation entrepreneurs and innovation. The DST Secretary Abhay Karandikar emphasized that this decision serves as a vital means toward acquiring strategical autonomy in vital technological domains.

The present tax incentives have failed to boost R&D investments from the private sector. The pre-budget Economic Survey presented evidence about business organizations resisting research and development investments. Research and development expenses in the nation amount to 50% from the government sector and 41% from corporate companies according to V. Anantha Nageswaran in his role as Chief Economic Advisor. The economist stressed that private industry must rise its funding levels toward research development activities with focus on strategic industrial areas.

The DST experienced a substantial budget expansion which increased from ₹8,029 crore to ₹28,508.90 crore during this financial period. Additional government departments secured significant financial growth. The Department of Biotechnology received its budget raised to ₹3,446.64 crore for the current fiscal year over the ₹2,275.70 crore from the previous fiscal year. Concurrently the Department of Scientific and Industrial Research obtained ₹6,657.78 crore in budget increase from ₹6,323.41 crore in the last fiscal year.

The government shows dedication to research and development capabilities enhancement through specific actions while aiming to boost private sector involvement in innovation.

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